Enhancing cooperation between Indonesia and the EU
Retno L.P. Marsudi, Jakarta
In the last five years, Indonesia and the European Union (EU) have enjoyed good relations. The two were able to develop a mature and frank political dialog based on mutual respect and mutual benefit. In the future, the dialog will be strengthened and institutionalized through regular, ministerial EU Troika meetings, as agreed in the bilateral meeting between the Indonesian foreign minister and EU Troika delegates on Thursday.
However, a good political relationship is not the ultimate aim of bilateral engagement, but rather it signifies an important tool to develop further cooperation between the two. The good political will of Indonesia and the EU, to improve their relations, will only materialize if they can further their cooperation for the benefit of the people.
If we study the program priorities established by the new government of Indonesia, the Council of European Ministers of Foreign Affairs' Conclusion on Indonesia, and taking into consideration the results of the bilateral meeting, Indonesia- Troika EU, it is obvious that the two share some common features in shaping the future direction of bilateral cooperation.
In terms of combating terrorism, Indonesia shows willingness to cooperate with individual countries of the EU, but not under the framework cooperation with the European Commission (EC). The commission's advance team was here two years ago, but there have been no further developments to date.
At least, the EC had indicated some vehicles of cooperation that could be used, including through the Rapid Reaction Mechanism, as well as through the National Indicative Program 2005-2006. Hopefully, cooperation on such important issues can be implemented soon.
It is also worth noting that the European Commission, and some EU member countries, were among avid supporters of the Indonesian initiative to hold an interfaith dialog within the ASEM framework here, next year. This initiative was aimed at fostering mutual understanding and mutual respect between all faiths or religions in Asia and Europe, and making recommendations to actualize interfaith harmony within the international community .
In cooperation to boost trade, the EU is Indonesia's second most significant trading partner after Japan. In the last three years, bilateral trade between the EU and Indonesia increased 3 percent per year, and reached US$14,7 billion in the year 2003. However, this figure remains far from the expected total, and far less than the potential of the two, given the huge population of the two countries and the complimentary nature of their products.
Some impediments exist in this bilateral trade, including the standardization, certification and health requirements that make it difficult for Indonesian products to enter the European market. Taking into consideration the significant role of trade in boosting economic growth and eradicating poverty, it is high time that Indonesia and the EU spare no effort in improving bilateral trade.
In development cooperation, a program related to trade support does exist, hence this program should be continued, and maintained in future discussions of the design of the development-cooperation program.
In cooperation to encourage EU investment, one of the top priorities of the new government it to boost foreign direct investment to Indonesia. So far, the EU has been the biggest foreign investor in Indonesia. But again the quantity of EU foreign direct investment in Indonesia
Some of the reasons why the EU's investors have adopted a "wait and see" attitude lie in the domestic situation here. However, it is hoped that the bold intention of the new government to reform all areas related to investment will be the first step toward encouraging investors back to Indonesia.
The Troika delegation has left Indonesia and all positive messages have been sent out. What is left now is the real work, to follow up on all the good intentions and results of that meeting.
The article reflects the personal views of the writer, who is now the director of west European affairs at the department of foreign affairs.